In all forest regeneration consists of material

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felling, silviculture, forest regeneration work and other forestry work. In all, forest regeneration consists of material, purchased services and work costs, which will be posted as an investment using the forest-owner’s account in tangible assets called Activated forestry costs and the Forestry depreciation . All other property, such as building, machines, forest roads and ditches as well as current assets and capital will be accounted in the agricultural profitability book-keeping system MARTTI (2008). Wages and the work of the owner family Hours of both paid work and that of the owner family will be posted in the work book-keeping applying delivery felling, silviculture, forest regeneration and other forestry work. The cost of one’s own work will be calculated according to reported work hours and wage requirement such as 11.70 euros / hour in 2004 and 12.30 euros / hour in 2005. This wage compensation requirement is posted as expenses. Forest regeneration costs, however, will be activated and deducted as depreciation. Fair value accounting (FVA), the EU Directives, the US GAAP and Plan Comptable Général Agricole After the 1992 and 1997 reforms of the Finnish accounting legislation, the 4 th and 7 th Company Law Directives of the European Union were adopted in the accounting statutes (for a comparison between Finnish and EU norms, see Teränne 1993). The inductive approach of the classic theory in the form of expenditure-revenue theory was previously applied and profit based on realised and objective transactions (Kettunen 1993, Pirinen 2005). To avoid potential conflicts between EU accounting rules and IAS/IFRS, the EU Commission has incorporated a regulation in the
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Working Papers of the Finnish Forest Research Institute 93 24 Amendment directive which offers more flexibility in the presentation of Articles 23–26 income statements of the Fourth directive, giving the Member States the possibility that companies applying IAS/IFRS present an income statement which will not be in conflict with the Fourth EC Directive (Haller and Schoßgangl 2005). However, Elad (2004) has shown that IAS 41 is not only incompatible with the EU Fourth Directive, but also poses major implementation problems in various national settings. According to Haller and Schloßgangl (2005), the IAS/IFRS do not provide a sound conceptual basis for the presentation of income and expenses and are not consistent with the layout requirement of the Fourth EC Directive. However, they focus on the Amendment Directive of the EU Commission, which offers the possibility of companies applying IAS/IFS not being in conflict with the Fourth EC Directive. The International Accounting Standards Board (IASB) of the EU and the Financial Accounting Standards Board (FASB) of the US have agreed to work together to develop high quality, fully compatible financial reporting standards. The goal of these convergence efforts is to make US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS) as nearly as possible the same across jurisdictions while also improving the overall quality of those standards (Schipper 2005, 2007). The requirements of IAS 41 are neither
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  • Spring '17
  • Jane Smith
  • Balance Sheet, The Land, ........., International Financial Reporting Standards, Finnish Forest Research Institute

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